huck the ipod up to mac/pc via usb and do the following
with the ipod turned on (and hucked up to pc/mac) hold down the sleep and home buttons till the device goes off..... keep them both held down once off and when the ipod turns on and u see the apple logo, let go of the sleep button (top button) and keep the home button held down, eventually it will display a iTunes logo and usb connection on screen, in iTunes it will say its detected an ipod in recovery mode just hit ok then click restore and try ziphone again.